Name and Location
Woodlawn zinc/copper project, New South Wales, Australia.

Client
Heron Resources.

Project Description
The preliminary economic assessment (PEA) on the Woodlawn project has confirmed the economic viability of the project.

The PEA envisages a combined underground and tailings retreatment project, with feed processed through a single plant designed for co-treatment.

Total life-of-mine production is estimated at 353 000 t of zinc, 77 000 t of copper, 112 000 t of lead, 8.9-million ounces of silver and 59 000 oz of gold.

The operation will have a processing rate of 1.5-million tonnes using standard sequential flotation, with a steady-state production rate of 51 000 t of zinc, 10 000 t of copper, 16 000 t of lead, 1.1-million ounces of silver and 8 700 oz of gold contained within zinc, lead and copper concentrates. Significant reductions in development costs will be achieved using existing infrastructure.

Net Present Value/Internal Rate of Return
The PEA indicates a post-tax net present value, at an 8.3% discount, of $300-million and an internal rate of return of 46%, with an initial payback two years from the date of commissioning.

Value
Initial capital expenditure is estimated at A$140-million.

Duration
Not stated.

Latest Developments
The definitive feasibility study (DFS) results for the Woodlawn zinc-copper project are scheduled for release before the end of the June quarter.
 
The fully funded DFS will provide an updated mineral resource statement, an initial ore reserve statement for the underground project, an updated ore reserve statement for the tailings project, updated operating and capital cost estimates, and business case modelling.

This study will also underpin Heron’s funding campaign to bring the Woodlawn project into production in 2018.
 
Heron Resources MD and CEO Wayne Taylor has said he is pleased with the progress made to date, adding that the DFS remains on budget and on schedule for release before the end of June.
 
Following the release of the DFS results, a 2 500 m drilling programme will be undertaken focusing on the B Lens North and other near-mine targets, which are considered to be the highest ranking exploration targets with the potential to significantly expand the project after the current development phase.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Heron Resources, tel +61 8 6500 9200 or email heron@heronresources.com.au.